§ Mr. Alan HowarthTo ask the Secretary of State for Social Security what estimate he has made of the cost of the earnings top-up during its piloting stage; and if he will estimate the annual costs of a national scheme. [15073]
§ Mr. Roger EvansThe earnings top-up pilot is expected to cost a total of £65 million over three years. Two benefit rates—scheme A and scheme B—will test how different amounts of earnings top-up influence the decision to take up and remain in work. Present estimates indicate that the annual cost of a national scheme will be £265 million—scheme A—and £595 million—scheme B—at 1996–97 prices. These estimates would be subject to review as information on the effects of the benefit are collected and analysed during the pilot.